Company Registration in Dubai,UAE

When it comes to company registration in Dubai UAE, the first thing that you need to decide is whether your company will be located on the mainland or in a free zone.

If your company is intended to be set up as a mainland company, you might need a Local Sponsor. This requirement varies by type of commercial activity – most business activities do not require a Local Sponsor. However, it is still mandatory for some sectors like Construction and Defence. There are some 2,100 commercial activities, and it is possible to get a business license for multiple activities. A good business setup consultants in Dubai can help you figure out if your proposed company needs a Local Sponsor.

The Local Sponsor needs to be an Emirati (this is the term used to address an UAE national, someone who is a citizen of the United Arab Emirates) who has attained the age of 21. It could also be a company incorporated in the United Arab Emirates that is 100% owned by Emiratis. According to UAE law, the Local Sponsor (also referred to as Local Partner) must own 51% of the shares in the company. He/She will legally represent the company before all Government agencies.

So you need someone with experience in business setup in Dubai. A company formation expert who has specific experience in business setup in Dubai can put you in touch with the right Local Sponsor for your business. It is to be noted that the Local Partner owning 51% of the shares in the company does not mean he/she will take home 51% of the profits. The Local Partner could be compensated for his/her services on a monthly / quarterly/ half-yearly / annual basis, or he/she could take a percentage of the sales.

Alternatively, you could set up your company in a free zone. Free zones are established with specific objectives in mind, and have dedicated infrastructure for the same purpose. You do not need a Local Sponsor for your free zone company, but then again, not all commercial activities are allowed to be carried out by a free zone company. To be specific, only Limited Liability Company structures are permitted in free zones. Limited Liability Companies cannot engage in banking / finance / investment, to mention one example.

Company Registration in Dubai

If there is only one business owner for the company, it has to be incorporated as a Sole Establishment. This is the same as a Proprietorship Firm. If you have a business partner, or more than one, it is recommended that you set up your company as a Limited Liability Company or LLC. The minimum number of owners required for a Limited Liability Company is two and the maximum number is 50. If there are more than 50 shareholders, then you have to register the company as a Private Limited Company.

You can also register your company as a Private Limited Company if you plan to have to majority shareholder(s) and minority shareholder(s). In a Limited Liability Company, all the shareholders own an equal percentage of the shares. If you plan to take your company public later on, you need to register it as a Public Joint Stock Company. Or as a Branch Office if the company will be owned not by individual(s), but by another company.
Company Registration Dubai
You could also register your company as a Representative Office if it will be owned by another company located overseas. The difference between a Branch Office and a Representative Office is that a Representative Office is not allowed to make a profit. A Representative Office must outsource all its work back to its parent company. So depending on your business needs, there can be a right company type for you. A company formation expert can help you zero in on the right type of company for your business.

He/She can also draw up the company formation documents, which mention the name of the company, who the owner(s) is/are, and the reason why it is being set up. The company formation documents need to be duly notarized by a Notary Public for them to have legal validity in the United Arab Emirates. Your friendly business setup consultant who specializes in company registration in Dubai UAE can help you get the company formation documents notarized.

There are certain rules pertaining to company nomenclature in the United Arab Emirates. You are not allowed to have religious terms in the name of your company. A first name is allowed to be part of the company name only if it is the first name of one of the shareholders. The names of cities and countries are not allowed, but nationalities and the names of geographical regions are permitted. Your company name – formally referred to as your trade name – cannot begin with terms like ‘Global’ or ‘International’.
There are certain rules pertaining to company nomenclature in the United Arab Emirates. You are not allowed to have religious terms in the name of your company. A first name is allowed to be part of the company name only if it is the first name of one of the shareholders. The names of cities and countries are not allowed, but nationalities and the names of geographical regions are permitted. Your company name – formally referred to as your trade name – cannot begin with terms like ‘Global’ or ‘International’.
A good business setup consultant can not only advise you on this aspect, but also run a search to see if the name you have in mind is available. He/She can also reserve the trade name prior to drawing up the company formation documents, so that when you apply for company registration in Dubai, your preferred trade name will be allotted to you and not anyone else who applies for the same trade name before you. This can prevent you from having you go back to square one and redo everything all over again.

When you apply for company formation in Dubai, you are also required to submit a copy of your Tenancy Contract. So you would have to lease commercial space before applying for company registration in Dubai. You need to select a suitable commercial space for your operations, enter into a Tenancy Agreement with the owner of the premises, and register the Tenancy Agreement so that it becomes a legally binding Tenancy Contract or Ejari as it is known locally.

Your business setup consultant can help you find the right commercial space for your company. Depending on the nature of your business, you might require office space alone; or office space with a warehouse. If you are planning to store anything in bulk (such as would be the case if you plan to open a general trading company), you would need a warehouse. If you are planning to store fresh produce and / or frozen food, you would need a temperature-controlled warehouse.
Additional approvals, such as from Dubai Municipality and the Ministry of Health and Prevention, may be required in some cases. A business setup consultant can help you obtain all these necessary approvals before you apply for company registration in Dubai. He/She can also lodge the application for company registration on your behalf, ensuring that all the paperwork is in order. If everything is the way it should be, company registration in Dubai is granted in a matter of a few business days.
Once you have been granted company registration and a Business License, you can commence operations immediately. A business setup consultant can also help you open a bank account, so that you can make and receive payments with ease. Owing to strict anti-money laundering regulations in the United Arab Emirates, it is not easy to open a bank account. But with the right business setup consultant in your corner, the entire process could take as little as two hours instead of the whole day.
Company Registration in Dubai
A business setup consultant can also help you obtain employment visas for the staff you plan to hire, as well as dependent visas for your immediate family members. A good business setup consultant would tell you that for every staff member that you plan to hire, you need approximately 100 square feet of commercial space. So you would have to rent commercial space according to the number of workers you have in mind for the operations of your company.
Once company registration has been granted, the address of the commercial space you have leased becomes the registered office address of your company. It is easier to scale up in a free zone than on the mainland, so if you wanted to keep costs down, you could start your operations in a free zone. This is where the advice of a business setup consultant can come in handy. If a free zone is what would be best, a business setup consultant can also recommend the right free zone for your company.

Need Professional Assistance with Company Registration in Dubai?

The team of experts at A&A Associate LLC has years of experience with company registration in Dubai and the rest of the United Arab Emirates. They come from an array of diverse backgrounds such as Legal, Finance, and Management; and can be expected to lend their expertise. For new business setup in Dubai, they can be counted on to assist you all the documentation and the filing process, so that your company registration in Dubai happens smoothly.

If you are looking at options for low cost business setup in Dubai, then A&A Associate LLC is the right business setup consultant for you. They can help you with company registration in Dubai. So for all your needs pertaining to company registration in Dubai, A&A Associate LLC can advise you on the right course of approach, so that it is a hassle-free affair. You need not think of any other business setup consultant for company registration in Dubai. We take care of everything, so that you don’t you have to.

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